Nigeria’s debt rose by N2.3trn between March and June

Nigeria’s total debt stock increased by N2.381 trillion between March 31 and June 30, data released by the Debt Management Office (DMO).

The total public debt stock, which comprises the debt stock of the three tiers of government, stood at N31.009 trillion at the end of June 2020 compared to N28.628 trillion at the end of March 2020.

The DMO said, on Wednesday, that the increase in the debt stock was due to the $3.6 billion budget support loan from the International Monetary Fund, new domestic borrowing to finance the revised 2020 appropriation act including the issuance of the N162.557 billion Sukuk, and promissory notes issued to settle claims of exporters.

“The DMO expects the public debt stock to grow as the balance of the new domestic borrowing is raised and expected disbursements are made by the World Bank, African Development Bank and the Islamic Development Bank which were arranged to finance the 2020 budget.

“It will be recalled that the 2020 appropriation act had to be revised in the face of the adverse and severe impact of COVID-19 on government’s revenues and increased expenditure needs on health and economic stimulus amongst others.

“Additional promissory notes are expected to be issued in the course of the year, this, and new borrowings by state governments are also expected to increase the public debt stock.”

After reviewing the 2020 budget as a result of the COVID-19 pandemic, the federal government requested for loans worth $6.9 billion from the World Bank, International Monetary Fund and African Development Bank.

The IMF approved a $3.4 billion loan for Nigeria in April.